TikTok’s Financial “Wild West:” Could a Ban Make Money Advice Better?

The Supreme Court’s decision to uphold 2024 federal legislation banning TikTok unless its Chinese parent company sells it could force millions of young Americans to find new sources of financial advice—and experts say that might be for the better. While each Gen Z user gained an average of 49 pieces of financial guidance from “FinTok” in 2024, surpassing traditional sources like family and friends, studies reveal that a vast majority of investment recommendations on social media contain misleading information or omit crucial risks.

Could a TikTok ban actually improve the financial information many Americans receive?

Key Takeaways

• Social media has become a primary source of financial information for Gen Z and Millennials.
• A TikTok ban would disrupt the “finfluencer” ecosystem but may also reduce the spread of questionable financial advice and investment scams.
• Alternative platforms are likely to fill the void if TikTok exits the U.S. market.

Financial Advice on Social Media

The rise of “finfluencers“–social media influencers focused on financial content–has transformed how younger generations learn about money management. Millions of young Americans now turn to social media as their primary source of financial information, with nearly 80% of respondents saying they have gotten their financial advice from social media, more than traditional sources like family members (35%) and internet searches (33%). This departs significantly from how previous generations were guided on financial matters.

While social media has made financial education more accessible and engaging for younger and more diverse audiences, it has also boosted the spread of oversimplified and potentially harmful advice. Indeed, a 2024 study found that more than 70% of investment recommendations found on social media platforms contained misleading information or failed to disclose important risks.

One recent analysis of finfluencer tweets showed that only 28% of influencers would generate positive monthly returns for their followers. More worrying, 56% of finfluencers exhibit what researchers term “antiskills,” leading to average monthly losses instead. Compounding the problem is that the researchers have found that these less-skilled influencers often have larger followings and wield greater influence over retail trading patterns than their more skilled counterparts.

The Impact of a TikTok Ban

In 2024, the U.S. passed legislation requiring Chinese parent company ByteDance to sell TikTok if it wanted to keep the app available to U.S. consumers. A January 2025 Supreme Court decision refused to halt the ban, leaving it in the hands of the incoming Trump administration.

Financial experts are divided on whether such a ban could meaningfully cut the spread of questionable financial advice. While TikTok tends to dominate the finfluencer space now, content creators could easily migrate to other platforms like Instagram, X, or YouTube Shorts.

However, TikTok’s algorithm has been particularly effective at amplifying sensational and viral content, often prioritizing engagement over accuracy, experts have claimed. TikTok’s exit might be the chance to provide better standards and oversight for financial content on social media.

Many argue that finfluencers serve an important function. While the conventional financial advisory field remains predominantly white and male (e.g., around 82% white and 75% male among certified financial planners), finfluencers are notably more diverse.

Ambreen Ben-Shmuel, a sociology researcher who has studied the finfluencer ecosystem, says “this diversity manifests not just in demographics but in communication styles and content focus.” She points out that female finfluencers often address previously overlooked topics like the intersection of mental health and money management, while finfluencers from various backgrounds bring attention to unique financial challenges faced by underrepresented communities.

The Bottom Line

While a TikTok ban could temporarily disrupt the flow of some social media-based financial advice, it’s unlikely to fundamentally solve the challenges of misinformation or bad advice online. The underlying demand for free, accessible financial information among younger generations remains strong, and content creators do reach more diverse audiences than traditional financial advisors. A more sustainable solution might lie in improving financial literacy education and developing better standards for online financial content across all social media platforms.